California Bill Would Create 'State Monitors' for Foreclosures

California Assemblyman Ted Lieu (D-Torrance) has introduced a bill that would provide for what he calls "state-appointed monitors to ensure homeowners have a chance to work out with their lenders a plan to prevent home foreclosure." California leads the nation in the number of home foreclosures. Mr. Lieu said in a statement, "As distressed homeowners continue to be at the mercy of lenders unwilling to modify their loans, it is imperative that we do whatever we can to keep people in their homes." The Orange County Register questioned whether the bill has any chance of passing but noted that the Assemblyman "has had some success with related bills since the housing crash began. He was one of the key sponsors of the 90-day statewide moratorium — most sizable servicers quickly got exemptions by showing they are doing loan mods — and he backed another bill that passed authorizing the Department of Corporations to collect data on servicers, though the Department cannot release data on individual company performance and consumer advocates say that compromise essentially neutered the bill."